Environmental Due Diligence

Environmental - Due Diligence Know Your Liabilities and Your Property A Phase I Environmental Site Assessment (ESA) is generally considered the first step in the process of environmental due diligence.

ESAs reveal potential or existing environmental contamination liabilities or recognized environmental conditions (RECs) for a piece of real estate, such as: petroleum product storage and retail facilities, chemical residues, dry cleaning facilities, solid waste disposal, agrochemical storage and application and hazardous substances used on the property. At MSA, we work with property owners and potential developers to resolve issues and incorporate solutions into the property development.

1940

2014

Phase I ESA Central Illinois MSA conducted a Phase I ESA of a 40 acre farm tract in central Illinois for a client interested in purchasing the property. This initially seemed like a simple and fast “clean” Phase I, and this is likely what the client was expecting. However, the historical research revealed unexpected conditions. Interviews with local workers revealed that one corner of the site had previously been used as a gas station, long since demolished.

In addition, several buildings of unknown use were also visible on old aerial photos. Tax records showed that this portion of the site was previously a separate parcel, owned by two coal mining companies.

The state coal mine database indicated that mines were present

in the area, and two of the named operators were these same companies. The associated mapping application showed prior undermining below the site and nearby area. This suggested that the buildings visible in the aerial photos were associated with mining activity, another potential environmental concern.

The results of our investigation enabled the client to make an informed decision about his risk tolerance in property acquisition.

Without completing the Phase I ESA process, these concerns might not have been identified, especially considering the benign appearance of the property.

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Environmental - Due Diligence Phase I & II ESAs Two Harbors, MN The City of Two Harbors needed to upgrade its existing wastewater treatment facility (WWTF) to correct a sanitary sewer overflow problem. Before constructing the new overflow basin, the City needed to negotiate the purchase of the existing WWTF property and surrounding area for expansion. The City hired MSA to complete a Phase I ESA in conformance with the scope and limitations of ASTM Practice E 1527.

The Phase I ESA identified the following RECs associated with the 7.93-acre parcel, which dates back to 1920: • An underground storage tank, formerly located at the water treatment facility.

• Railroad spur tracks and former outdoor storage of rail ties on the property, which indicated historical railroad operations and potential of residual contamination.

• Former demolition disposal site, east of the property.

• Former explosives house located near the eastern boundary of the property.

• Former Standard Oil site, which contained two underground storage tanks, located directly west of the property.

Our team identified soil contamination within four feet of the ground surface and prepared a Development Response Action Plan (DRAP), which outlined the necessary process to mitigate the soil and groundwater. Concerning contaminants included arsenic, lead and diesel range organics. The project team hauled approximately 4,800 cubic yards of soil off-site to a permitted landfill for disposal.

Another 12,000 cubic yards were hauled off-site to City-owned property, where a permanent berm was constructed.

The WWTF upgrade plan required removing a large quantity of soil during construction. MSA characterized the soil that would be removed prior to finalizing the purchase agreement and construction plans.

Former Automotive Property Phase I ESA Lanark, IL The City of Lanark wanted to purchase an existing downtown building and repurpose it as its new municipal office building.

However, there were concerns the building’s previous use had left the site contaminated, potentially complicating the City’s plans.

The City hired MSA to perform a Phase I ESA. Our team facilitated an inquiry into the ownership and use of the property to identify RECs connected to the property and permit the City to qualify for liability protection, in accordance with the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA).

Based on the Phase I ESA, our team determined the site was potentially contaminated, and the City should conduct a Phase II ESA to determine the specific type of contamination present.

BEFORE

photo courtesy of https://lanarkil.gov/

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